Analyst: "Worst Case" Is Apple Gives Away Bumper Accessory

Reception issues aside, one way a financial analyst thinks Apple could resolve the problem, without hardly affecting their bottom line is to either heavily discount the bumper accessory or better yet, give them away, according to AppleInsider.

Analyst Shaw Wu of Kaufman Bros. wrote to investors on Friday that he thinks the issues with the antenna in the iPhone 4 are "overdone."

"We don't think the antenna issue is that big of a deal where it would warrant a product recall," wrote Wu. "The reason is that most users have a case anyway to protect their iPhone and to customize to their personal preferences. In our view, in the worst case, Apple provides a discount on the $29 iPhone 4 bumper case or includes one for free with an iPhone 4 purchase. Either way, we do not think this would have a material impact on our forecasts."

Earlier today, Apple made mention that when one grips any mobile phone, it can affect the performance of the device. A new iOS update may possibly be in the works to resolve the issue as well.

However, this issue can also be relieved through using a case, which would prevent the metal band around the perimeter of the phone from making contact with the user's skin, thus the "bumper" case from Apple.

Wu is still feeling "bullish" about the iPhone 4, thinking that Apple sold anywhere between 1.5 million to 2 million iPhone 4 units. If it's on the high end, this would be double what the iPhone 3GS pulled a year ago.Follow this article's author, Matthew Tilmann on Twitter.

Comment

A bunch of us spoke about this last night, as we waited in Sherman Oaks for our iPhones - props to that store for staying open past 11PM to serve the long line, and to the shopping center for allowing Apple to stay open.

Consensus was pretty much: if the antenna is a problem, then Apple should fix it. Barring fixing it, a free bumper (really, $29?!) or a case should compensate appropriately for the problem. We shouldn't have to hold the phone differently because of what is clearly a design flaw.

When testing my phone, the issue doesn't arise, though, so clearly not every phone is affected.